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Feb 8, 2012

The electricity supply industry is facing dramatic changes driven by the need to reduce carbon emissions by finding new generation sources but underlying this is a slow change to the structure of the electricity supply system itself. The shift to a distributed generation model will challenge the business model of existing traditional utilities and generators as the demand for centrally generated power falls. These companies will need to adapt if they are to survive. It will also have social implications that extend beyond the electricity system itself as consumers take control of where and how they generate their electricity.

A 13.7MW aeroderivative gas turbine with an electrical output efficiency of 34.9% will show an overall efficiency of 77.6% in a CHP configuration whereas an 11.3MW industrial turbine with a simple cycle efficiency of 29.8% can achieve 80.5% in the CHP configuration.

A 300kW gas engine in a combined heat and power system for a commercial building costs around $2,000/kW. Meanwhile the cost of a cogeneration system for a waste treatment plant is around $2,350/kW - $4,250/kW depending on the size and number of engines.

SOFC units can achieve practical efficiencies of 50%, somewhat lower than the theoretical efficiency of around 60%. However the extremely high operating temperature means that waste heat from the cell can be used to drive an auxiliary gas turbine, pushing theoretical efficiency to 70%.

Your key questions answered

What are the drivers shaping and influencing distributed generation development in the electricity industry?

What does distributed generation cost? What will it cost in the future?

Which distributed generation technology types will be the winners and which the losers in terms power generated, cost and viability?